Understanding the AMA CPT Code Licensing Fee on Your ClinicMind Invoice

What Are CPT Codes and Why Are They Essential?

Current Procedural Terminology (CPT codes), developed and maintained by the American Medical Association (AMA), serve as the standardized system for reporting medical, surgical, and diagnostic procedures. These codes are critical for accurate billing, documentation, and communication between healthcare providers and insurance payers.

Why Is There a Licensing Fee for CPT Codes?

The AMA owns the copyright to CPT codes, and any EHR, billing system, or practice management platform that integrates them must obtain a license. This ensures:

Ongoing maintenance and updates to reflect medical advancements.
Compliance with regulatory requirements for accurate coding.
Uniformity in medical billing to prevent discrepancies.

Any entity that uses, references, or displays CPT content is required to obtain a license from the AMA or an authorized distributor. This includes electronic health record (EHR) systems, practice management software, and other healthcare applications incorporating CPT codes.

How Does This Impact ClinicMind Users?

ClinicMind integrates CPT codes within its platform to streamline your billing and documentation processes. To comply with AMA licensing requirements, ClinicMind incurs an annual per-provider fee for the use of these codes. Consequently, this cost is reflected in your invoice as the “AMA CPT Code Licensing Fee.”

This practice is standard across the industry, as all users of CPT content are expected to obtain the appropriate license for their use case (References below). Starting May 1, ClinicMind invoices will reflect two new AMA CPT licensing fee line items:

A one-time charge covering up to three years of past CPT code usage.
A monthly charge for the current billing period.

Although the AMA charges this fee annually, ClinicMind has structured it into 12 monthly installments for ease of payment.

Note: This is a pass-through cost—ClinicMind does not add any markup or service fees on top of the AMA license.

Frequently Asked Questions (FAQ)

Q1: Do all providers need to pay for CPT code licensing?

Yes. Any clinician using CPT codes in their practice—whether for insurance billing, out-of-network claims, or clinical documentation—must have a valid AMA license.

Q2: Is this fee unique to ClinicMind?

No. All EHR, practice management, and billing platforms that include CPT codes must pay licensingfees to the AMA.

Q3: How are licensing royalties determined?

The AMA applies royalties for the use of CPT codes based on the type of product in which the CPT content is used and the type of user of the product.

Q4: Does this fee apply per practice or per clinician?

The AMA fee is typically charged annually per practice type, regardless of the number of clinicians yearly, ensuring each provider has access to an up-to-date, compliant CPT code set.

Q5: Can I opt out if I don’t use insurance billing?

No. Even if you don’t bill insurance, CPT codes are still required for standardized documentation, out of-network claims, and medical record accuracy.

Q6: Will my administrative staff be charged the AMA fee?

No, the fee applies only to members of your practice who have a clinician role in ClinicMind.

Q7: Can I pay the AMA directly instead of through ClinicMind?

While you can purchase a CPT license directly from the AMA, it won’t cover ClinicMind’s use of CPT codes within our EHR.

Why This Matters

Understanding the AMA CPT licensing fee helps providers ensure compliance, maintain billing accuracy, and contribute to the ongoing development of the healthcare industry’s standard coding system.

If you have any questions about how this applies to your ClinicMind account, please reach out to our support team.

Summary of Key Points:

CPT codes are AMA-owned and require a paid license for use in EHRs.
ClinicMind, like other platforms, must pass this cost through to providers.
The AMA charges annually, but ClinicMind offers monthly payments.
This fee applies per clinician and is a mandatory compliance cost.
No service fees or markups are added—ClinicMind only passes the direct AMA cost.
By structuring the AMA CPT licensing fee transparently and fairly, ClinicMind ensures that our users stay compliant without unnecessary financial burden.